There has been increasing discussion about the role of the Malta Council for Economic and Social Development (MCESD), a tripartite national institution for social dialogue. The Malta Workers’ Union (UHM) said in March that the council was unduly influenced by the government, while the island’s Chamber of Commerce has described it as ‘rudderless and irrelevant’.
The council was originally set up in November 1988 as the Malta Council for Economic Development, with the specific aim of designing a national development plan and proposing a wages policy for Malta. Its name was changed in 2001 to the Malta Council for Economic and Social Development (MCESD) and it was given legal status, becoming a forum through which employers and trade unions could exert influence on policy-making. The question that often arises is whether it has lived up to its name.
The council was called ‘a rudderless, irrelevant and inconsequential national institution’ by the Malta Chamber for Commerce, Enterprise and Industry (CCEI) in its document ‘Economic Vision for Malta 2014–2020’, published in July 2014. However, MCESD Chair John Bencini said it was the responsibility of the social partners to make MCESD relevant. A working group was set up to suggest ways of doing this after the President of the Malta Workers’ Union (UHM), Jesmond Bonello, suggested that reforms were needed.
Paul Pace, the President of FORUM, a loose confederation of unions comprising professional and clerical workers, praised the MCESD, saying that the government paid attention to many proposals made by its members. The Minister for Social Dialogue, Consumer Affairs and Civil Liberties, Helena Dalli, said the government believed the MCESD was useful and relevant and that she intended to strengthen it. The Secretary-General of the General Workers' Union (GWU), Tony Zarb, expressed his surprise at the remarks of the CCEI.
The working group’s recommendations were published in November 2014. Key among them was that the MCESD should be autonomous, with the Minister Social Dialogue, Consumer Affairs and Civil Liberties (or a representative) being able to attend meetings on specific matters, but without the government having overriding power over any of the council operations. It was also proposed that the council should loosen its ties with the Ministry of Social Dialogue. The working group suggested restructuring in three stages:
Nevertheless, it seems that all those involved with the council have acknowledged its consultative and advisory role. Pre-budget discussions are commonly held between the social partners and the Finance Minister. Although the social partners’ proposals are not included in full, their view is that their advice and proposals are heeded. Members of the MCESD have also been consulted before presentation of the National Reform Programme (NRP) to the European Commission. Finance Minister Edward Scicluna told the social partners at the last such meeting on 27 March 2015 that the NRP is the first step towards Malta's annual budget for 2016 (299 KB PDF).
A consultative meeting on Malta's energy policy was also held by the MCESD with the Leader of the Opposition, Simon Busuttil, in January 2015. Mr Busuttil demanded that the substantial drop in international fuel prices should be reflected in what was being charged at Malta’s petrol stations. A meeting to discuss this with the Finance Minister was then arranged at the request of the Confederation of Malta Trade Unions (CMTU) and the Malta Hotels and Restaurant Association (MHRA).
Another recent MCESD meeting was called on the initiative of the social partners to discuss a position paper published by the Malta Employers' Association (MEA). It proposed changes to the Employment and Industrial Relations Act on issues such as leave entitlement and public holidays, the industrial tribunal, planned obligatory leave, sick leave entitlement and the cost of living allowance (COLA).
Although these meetings were successful, the UHM later wrote to the MCESD on 3 March 2015 to say it believed the priorities of the Office of the Prime Minister and several Cabinet ministers were exerting a strong influence on the council. The UHM claimed all requests from the Prime Minister's office or from other ministers were immediately accepted without question by the council. The council seemed to take the view, however, that the validity and importance of requests from the social partners must be considered before they could be discussed.
In March 2015, the CCEI called on the MCESD to concentrate on issues that enhance national competitiveness. These issues, it believes, must be placed at the centre of policymaking to improve the business environment in Malta.
Members of the MCESD have divergent interests and different ideological views. It would be too idealistic to expect them to bury their differences. Nevertheless, by keeping social dialogue alive at national level, the MCESD has provided an effective brokerage for trading off these different interests.